Empty Pockets
Well-known member
Has anyone had experience putting a rider on their homeowner's policy? I have a sizable collection of tools, acquired over several decades. My agent is a little hesitant to write the rider. any suggestions?
Insurance Rider for Tools
- Thread starter Empty Pockets
- Start date
Depends on the value & quantity of the tools and if they are "used in your trade" as in are you working from home or relying on your homeowners policy to cover your personal tools stored at work.
Most insurance has a limit on covered losses in individual categories or classes of items. Things like: electronics, firearms, tools, artwork, collectibles, antiques, etc tend to have a coverage cap per category significantly lower than your total coverage cap.
Your best bet would be to take a good inventory of your tools and your home, then sit down with a good agent to figure out just what coverage you need.
OP
Empty Pockets
Well-known member
They are stored at home, and no longer used for work. As the replacement cost is substantial (my tools, as well as from my father's and grandfather's estates), I have been taking inventory and looking up replacement costs for several weeks (in my spare time). It's a major project.
Mohawk Dave
Well-known member
I'm a Claims Adjuster.
That being said, tools for personal use/hobby (no income from them) are covered under COVERAGE C: CONTENTS. COV C is "usually" 10% of your COV A (DWELLING).
So, if your house is insured at $450k, your contents are "probably" at $45k. You can endorse this to whatever you want. As bigfun stated, there are exclusions that usually cap out at $500-$2500 (depending on carrier) including computers, firearms, jewelry, collectibles, Disney, Barbie, stamps, coins,.....oh yea, liquid cash is usually only $500.
My advice: double check with your agent and make sure you don't have some obscure policy that is full of ********. Then take a million pictures of your contents and store them in the cloud and on a flash drive OUTSIDE OF THE HOUSE IN CASE OF FIRE. I have an Otter Box over yonder that fire will not get near.
Also make sure you have RCV.
RCV= REPLACEMENT COST VALUE (What the tool costs to replace. Make sure you don't only have ACV.
ACV= ACTUAL COST VALUE (What an old item "x" is worth today after depreciation)
That being said, tools for personal use/hobby (no income from them) are covered under COVERAGE C: CONTENTS. COV C is "usually" 10% of your COV A (DWELLING).
So, if your house is insured at $450k, your contents are "probably" at $45k. You can endorse this to whatever you want. As bigfun stated, there are exclusions that usually cap out at $500-$2500 (depending on carrier) including computers, firearms, jewelry, collectibles, Disney, Barbie, stamps, coins,.....oh yea, liquid cash is usually only $500.
My advice: double check with your agent and make sure you don't have some obscure policy that is full of ********. Then take a million pictures of your contents and store them in the cloud and on a flash drive OUTSIDE OF THE HOUSE IN CASE OF FIRE. I have an Otter Box over yonder that fire will not get near.
Also make sure you have RCV.
RCV= REPLACEMENT COST VALUE (What the tool costs to replace. Make sure you don't only have ACV.
ACV= ACTUAL COST VALUE (What an old item "x" is worth today after depreciation)
I have a rider on the policy that covers the shop for replacement value, in order to get it the agent had to come out and do a video inventory of all the tools and equipment and then send that to the Ins company so they could store it. every quarter I send them copies of the invoices for any new stuff along with pics. Kind of a pain in the **** but I know that I am covered.
JoeFin
Well-known member
I placed $100000 on the contents of my shop - doesn't count the structure.
It was very easy. I invited my agent over and we sat down at the kitchen table and had every thing wrapped up into a bundle in about 1/2 hr
It was very easy. I invited my agent over and we sat down at the kitchen table and had every thing wrapped up into a bundle in about 1/2 hr
theoldwizard1
Well-known member
A few years back, a member had a hire in his shop. Although he had a lot of pictures he did not have a written inventory. Also he had many used auto parts. He got nothing for the used parts (partially because he had to inventory, but also because the insurance company would not value them as worth much because they were used).
His final settlement was MUCH LESS than the cot of replacing the tools with similar quality tools DESPITE HAVING REPLACEMENT COST coverage.
Maybe someone in the insurance business can explain why "replacement cost" is not "replacement cost". I mean, hand tools don't really wear out, so there should be no deduction for age.
His final settlement was MUCH LESS than the cot of replacing the tools with similar quality tools DESPITE HAVING REPLACEMENT COST coverage.
Maybe someone in the insurance business can explain why "replacement cost" is not "replacement cost". I mean, hand tools don't really wear out, so there should be no deduction for age.
theoldwizard1
Well-known member
Mohawk Dave
Well-known member
Somethings not jiving. Replacement cost is just that. However, they do first pay out ACV until you prove that you have bought the items again, then the release the depreciation (the difference between ACV and RCV).
Unfortunately they do depreciate hand tools...hell, I have to depreciate everything except coins, antiques, collectibles etc. when I do contents losses.
Maybe he got the ACV check and never purchased all the items and requested the depreciation???
If you lost a Snap On F80 in a fire, and it cost $90 new, they depreciate, let's say 10%, so they pay out $81 and when you submit the receipt that you bought a new one for $90, they release the $9 depreciation (Send you a check for $9) ..... make sense?
If that's not the case with him, sounds like someone dropped the ball on getting him covered or handling his claim correctly.
softailgarage
Well-known member
This is what every member should have. This is a home inventory database set up specifically for tools. It came from The Garage Hangout, a now defunct forum that was around prior to GJ. I've got an old XP computer I use, then upload to an external HD and store away from the house.
http://garagejournal.com/forum/showthread.php?t=55227&highlight=HOME+INVENTORY+DATABASE
http://garagejournal.com/forum/showthread.php?t=55227&highlight=HOME+INVENTORY+DATABASE
How detailed pics does the insurance companies require? Can I take a pic of a socket set on a rail and then label the pic "Craftsman 3/8" dr metric 9mm-19mm" for exmple, or do they want a pic of each individual socket showing the size, etc stamping on the socket? I got started with taking a pic inventory of my things and have been trying to get pics that show the actual model number, etc on the tool. Also does the insurance companies require you to show proof of purchase (reciepts) of your tool purchases? How are they to know I did not go take a bunch of pics of my buddies tools and claim I had all those tools?
softailgarage
Well-known member
If you look at the database, all that info can be put in along with pictures. It simple to use and perfect for keeping it all organized.
theoldwizard1
Well-known member
IMHO, that is lawyers playing fast and loos withe the English language !
What the "average" person expects is a replacement item. How does someone go about purchasing insurance that actually does replace documented items ?
Mohawk Dave
Well-known member
You can't. What I mean by that is that they will not pay out RCV until the item has been replaced with proof. The reason is as follows:
Let's use your house as an example. The house (dwelling) is called a RISK. Why? Because it is a "risk" to the insurance carrier. So, they insure said "risk" for $100k, and then you have major water damage: well, they need that risk put back to $100k as they are still insuring it. If it only gets back to $50k, they are overinsuring the risk.
They will pay to replace an item at full value, but only after replaced. (Unless it's chump change then sometimes it's not worth the holdback (depreciation) man hours and paperwork).
theoldwizard1
Well-known member
That is not what I am hearing !
Say I have a Craftsman tool chest full of Craftsman wrenches, sockets, etc., etc. I have a documented inventory. It is destroyed in a fire. Even if I go out and purchase exact replacements and submit that bill, I am not likely to recover 100% of that cost, due to "wear and tear".
Okay, so maybe knock 25% of the chest, but all of the hand tools are "lifetime guaranteed". People in this situation say they can not recover 100% of the cost.
Another scenario. I have a solid oak rolltop desk. Not antique, but top quality from about 30 years ago. Again "wear and tear" should not be an issue. Any chance that if I buy a replacement I can get 100% of that cost back ?
pcmeiners
Well-known member
Replacement insurance must vary state to state or company to company. My mom's house had a fire in 1996, a couple months before the fire I had her change the policy to "replacement".
Had no problems with reimbursement, 80% was smoke damage, no depreciation was involved; if it was lost, the company reimbursed at the cost to purchase it, no purchase was necessary (contents), and repairs did not need to be duplicated to be reimbursed (expensive wood paneling was reimbursed, but sheetrock was used). Items lost included most of my tools (non business), including some of the crazy stuff I had purchase dirt cheap at Englishtown NJ. Nothing like getting reimbursed $1000. for something you paid $50. for; then again I did not get anything for all my work.
Had no pictures but I was able to create lists of lost/damaged items. The only bad part, I needed to leave a large pad and pencil near my bed, I would wake up, multiple times at night remembering item for months after the initial inventory.
Not sure it had any affect but I produced a very detailed list/pictures of all damaged/lost items, took more than solid week. Also I ended doing a decent amount of the repairs myself as the contractor took off.
All in all my mom did very well
Had no problems with reimbursement, 80% was smoke damage, no depreciation was involved; if it was lost, the company reimbursed at the cost to purchase it, no purchase was necessary (contents), and repairs did not need to be duplicated to be reimbursed (expensive wood paneling was reimbursed, but sheetrock was used). Items lost included most of my tools (non business), including some of the crazy stuff I had purchase dirt cheap at Englishtown NJ. Nothing like getting reimbursed $1000. for something you paid $50. for; then again I did not get anything for all my work.
Had no pictures but I was able to create lists of lost/damaged items. The only bad part, I needed to leave a large pad and pencil near my bed, I would wake up, multiple times at night remembering item for months after the initial inventory.
Not sure it had any affect but I produced a very detailed list/pictures of all damaged/lost items, took more than solid week. Also I ended doing a decent amount of the repairs myself as the contractor took off.
All in all my mom did very well
Last edited:
pcmeiners
Well-known member
Pictures....
Pictures which show groups of items are fine, detailed picture of one item of a particular similar group is a good idea for details. Do not go crazy, you should be able to photgraph everything in your house and shop in an afternoon, quick, in focus pictures, over lapping pictures OK. Video cam is the best. Two people doing it the most efficient, one to open drawers, doors and guide, the other person just operating the media device.
For my Vidmar cabinets (5) 59" and (5) smaller, I open each draw and take a shot from 3" above.
You could take a picture of an entire room and as long as it shows the items you want covered your OK.
From my experience insurance companies have not looked at my pictures, they are more interested in what you state was lost and their own pictures. If your statement do not match what they see or believe to be possible, then your pictures come into play.
The pictures or videos are more for you to form a loss list, and for proof if you need to have a hearing . If the insurance company knows you have photographic proof, I would say you will do better on the claim.
Pictures which show groups of items are fine, detailed picture of one item of a particular similar group is a good idea for details. Do not go crazy, you should be able to photgraph everything in your house and shop in an afternoon, quick, in focus pictures, over lapping pictures OK. Video cam is the best. Two people doing it the most efficient, one to open drawers, doors and guide, the other person just operating the media device.
For my Vidmar cabinets (5) 59" and (5) smaller, I open each draw and take a shot from 3" above.
You could take a picture of an entire room and as long as it shows the items you want covered your OK.
From my experience insurance companies have not looked at my pictures, they are more interested in what you state was lost and their own pictures. If your statement do not match what they see or believe to be possible, then your pictures come into play.
The pictures or videos are more for you to form a loss list, and for proof if you need to have a hearing . If the insurance company knows you have photographic proof, I would say you will do better on the claim.
Spudland_Dave
Well-known member
I'm with Mohawk Dave on this...a couple years ago I had a temporary garage get destroyed during a hurricane...in the process it broke/damaged some of my items...roof top of my tractor, pressure washer hose reel, some other various items....
Adjuster was very quick, and in short order I received a check for the ACV of each item... Even for the repair of my tractor...they ended up only giving me 300.00 or so in the initial ACV payment, but the actual repair bill was closer to 1,300....so when I submitted the receipts I received full replacement value each item....Hose reel had an ACV of 75 bucks or so...cost me almost 275 to replace it so they paid me the balance when I proved I had actually replaced it.